M MO OD DU UL LE E 1 1

LEARNING UNIT 1

Data and Information, types of information :

Operational, tactical, strategic, Statutory

DATA AND INFORMATION

DATA is a raw material with which we begin.

Collecting data costs money and hence one must
collect necessary and sufficient data. Data is
generally used by machines and is useless
unless it is processed to create INFORMATION.
INFORMATION is Processed data, used by
managers to initiate actions and to run the
organization efficiently. The data processed by
machines gives information

TYPES OF INFORMATION

STRATEGIC : Needed for long range planning

and directions. This is less structured.

TACTICAL : Needed to take short range

decisions to improve profitability and
performance.

OPERATIONAL : Needed for day to day

operations of the organization. Eg: Daily Sales,
Billing.

STATUTORY : Needed by law to sent to

government authorities. Eg: Sales tax return.
MANAGEMENT HIERARCHY AND
INFORMATION NEEDS

Top Managers
Middle Managers
Line managers
Volume of Information
Type of Information
Low condensed Medium moderately
processed
Large Detailed Reports
Unstructured
Moderately structured
Highly structured
Tactical Short range improvement
Strategic- Long range planning
Operational Day to day policies

LEARNING UNIT 2

Why do we need information systems,

management structure, requirements of
information at different levels of management
NEED FOR INFORMATION SYSTEMS
Information systems are needed when timely
processing for fast action is needed, same data
has to be processed in different ways and when
organizations require innovative processing.

MANAGEMENT STRUCTURE

Chief Executive (Strategical)

Functional areas of management are as follows:

Production manager
Marketing manager
Materials manager
Finance manager
Human Resource manager
Line managers
PRODUCTION MARKETING MATERIALS
– purchase, stores FINANCE –Accounts
HUMAN RESOURCE
DEVELOPMENT(HRD) RESEARCH AND
DEVELOPMENT (R&D)

INFORMATION FOR MANAGEMENT

A Production Management
The following type of information is needed in
production management:

Strategic Information: 1)Yearly and monthly

production quotas and alternate schedules
2)Policies on machine replacement,
augmentation and modernization.
3)Identifying best product mix.

Tactical Information 1)Identifying and

controlling areas of high cost. 2) Identifying
critical bottlenecks in production. 3)
Identifying alternate production schedules based
on tools, machines etc. 4) Performance
measures of machines to decide replacement.

Operational Information 1)Monitoring up to

date production information by examining
assemblies, detecting likely shortages and
giving early warning. 2) Scheduling better
production dynamically. 3) Preventive
maintenance schedules. 4) Monitoring tool,
machine and personnel availability

B Marketing Management

Strategic Information: 1) Search for new

markets and marketing strategies. 2) Analysis of
competitors strategy 3) Technology and
demographic forecasts and product changes

Tactical Information: 1)Advertising

techniques and analysis of their impact.
2)Customer preference surveys. 3)Correlation
of prices and sales. 4)Sales force deployment
and targets. 5)Exploring alternate marketing
channels. 6)Timing of special sales
campaigns.

Operational Information: 1) Sales analysis by

regions, customer class, sales person. 2) Sales
target versus achievement. 3) Market share and
trends. 4) Seasonal variations. 5) Effect of
model changes. 6) Performance of sales outlets
7) Costs of campaigns and benefit.
C Material Management

Strategic Information: 1) Developing vendors

for critical items 2) Determining optimal levels
of inventory 3) Determining proportion of
material needed 4) Reducing varieties of
inventory

Tactical Information: 1) Developing vendor

performance measures. 2) Determining optimal
reorder levels. 3) Determining issues of items to
shops versus 4) standard needs. 5) Controlling
high value of inventory. 6) Determining impact
on material cost and 7) procurement with
design changes and new 8) product introduction.

Operational Information: 1) List of excess &

deficient items received. 2) List of items
rejected. 3) Critical items received. 4) Stores in
transit and in inspection. 5) Value of inventory
in hand. 6) Goods received, rejected and issued.

D Finance Management

Strategic Information: 1) Methods of financing.

2) Pricing policies 3) Tax planning.

Tactical Information: 1) Variations between

budget and expenses. 2) Large outstanding
payments/Receipts. 3) Credit and payment
status. 4) Cost increases and pricing. 5) Impact
of taxation on pricing

Operational Information: 1) Periodic financial

report. 2) Budget status to all functional
managers. 3) Tax returns. 4) Share transfers. 5)
Profit and loss account. 6) Payments and
receipts. 7) Payroll,provident fund accounts.

E Human Resource Management

Strategic Information:
1) Long range human resource requirements at
different levels. 2) Policies on human resource
development and training 3) Policies on
personnel welfare and facilities

Tactical Information: 1) Performance appraisal.

2) Demographic make-up of personnel and its
impact on retirement. 3) Production incentives.
4) Morale of personnel. 5) Absentee reduction.
6) Leave and overtime policies. 7) Personnel
deployment policies.

Operational Information: 1) Routine assessment.

2) Skills inventory. 3) Loan/advances and
recoveries. 4) Leave record.
INFORMATION FOR MANAGEMENT
WORKED EXAMPLES
1.1) If an information system were to be
designed for a hospital, what would be the
strategic and tactical information?

Strategic information in hospital

1.Cost-benefit of a new expensive diagnostic
instrument. (Such as CAT scanner). 2.
Long-term forecasts for opening a ward for old
age patients. 3.Technical developments
in routine diagnostic instruments and decision to
upgrade existing instruments.

Tactical information in hospital

1.Optimum replacement periods and use of
expensive instruments. 2.Optimum level
of drugs to be stocked keeping in view expiry
dates of drugs. 3.Operation theatre
utilization data for improved performance

1.2) For a hospital information system what

would be the Operational information
required?
 1. List of patients discharged, admitted
in every department. 2. Occupancy of
beds and schedules for admission of patients.
3. Absenteeism data of nurses and technicians.
4. Operation theatre allotment and schedules.

1.3) What is statutory information?

What statutory information is expected from a
hospital?

Information and reports that are required

by law to be sent to the government
authority is called statutory information.

Statutory Information for Hospital

1. Birth and death records. 2.
Infectious diseases record. 3. Profit and
loss account.

1.4) What type of Statutory information is to

be provided by a small-scale industry?

Any information required by law to be

sent to government authorities such as:
1. Income Tax returns 2. Sales tax
returns 3. Excise duty 4.
Employee state Insurance

1.5) Is up-to-date information always timely? If

not, give an example of up-todate but not timely
information? No, it is not necessary
that up-to-date information is always timely.
For example giving the correct information
about the casualties and the damage
caused due to earthquake after a week.
Another example is delivering a newspaper
dated 16 June with information Up-to-
date a week late.